Stencil is used normally as a mask for seeder pasting on pad of PCB. The objective of this study is to develop stencil cutting system and determine optimal conditions which make good-quality stencil by using a Nd:YAG laser. The effects of process parameters such as laser power, type of mask, gas pressure, cutting speed and pulse width old the cut edge quality were investigated. In order to analyse fille cut surface characteristics(roughness, kerf width, dross) optical microscopy, SEM photography and roughness test were used. As a result, the optimal conditions of process parameters were determined, and the practical feasibility of the proposed system is also examined by using a commercial Gerber file for PCB stencil manufacturing.